1. Which of the following is not required to be present in a perfected contract of sale?

a. Consent of the seller to transfer ownership and deliver the object

b. Object which is the subject matter of the sale

c. Cause or consideration

d. Execution of a contract of sale

e. Consent of the buyer to pay a price certain

f. Other:

2. Which of the following is not correct as regards the price in a contract of sale?

a. If the seller and buyer agree, the determination of the price can be left to the discretion of a third person

b. As a general rule, the seller is not bound to deliver the thing sold, if the buyer has not paid him the price

c. Gross inadequacy of the price makes the sale void.

d. The sale is void if the price is simulated

e. None of the above

3. Sam wrote Ben offering to sell his only house for P3 million. The letter was mailed on 1 December 2012, the same date it was written. Ben wrote Sam and offered to buy the same house for the same price of P3 million. The letter containing the offer to buy was mailed on 2 December 2012, the same date it was written. At 9:00AM of 10 December 2012, Sam and Ben received the letters written to each other. Which of the following is correct?

a. There is a perfected contract

b. There is a perfected contract only when they have orally confirmed their having received the letters written to each other

c. There is no contract because the offers were not certain

d. There is no contract because there was no acceptance

e.Answer not given

f. Other:

4. Ginny sold a car to Harry for P360,000 payable within 1 year at P30,000 a month. Harry failed to pay on the 4th, 5th and 6th months. What is/are the available remedy/ies of Ginny?

a. Foreclose the mortgage

b. Rescind the contract of sale

c. Demand for the purchase price by an action for specific performance

d. All of the above

e. B and C only

5. Ginny & Hermione entered into a verbal contract whereby Hermione will deliver 700 cavans of brown rice valued at P1,000,000. The parties agreed that upon receipt of the goods, Ginny will deposit P450,000 in the bank account of Hermione and for the P650,000, Jinky will convey her 100 square meter parcel of land, as payment. Which of the following statements is legally correct?

a. The contract is void because the price is not certain

b. The agreement constitutes a valid contract of sale.

c. The agreement constitutes a contract of barter.

d. The contract is not valid because it does not comply with the Statute of Frauds

e. None of the above

6. Contract by which property is sold but the buyer, who becomes the owner on delivery, has the option to give the same back to the seller instead of paying the price:

a. Contract of sale on trial

b. Contract of sale or return

c. Expropriation

d. Contract to sell

7. Delivery where the vendor continues to be in possession of the property sold not as an owner but in some other capacity:*

a. Traditio constitutum possessorium

b. Traditio longa manu

c. Traditio brevi manu

d. Quasi-traditio

8. Contract, founded upon a consideration, granting a person the privilege to buy or not to buy certain objects at any time within the agreed period at a fixed price

a. Contract of Sale

b. Contract to Sell

c. Option Contract

d. Cuerpo Cierto sale

e. Earnest contract

9. Which of the following is/are the effect/s of a waiver consciente in case the vendee suffers eviction?

a. The vendor shall pay the vendee the value of the thing sold at the time of the eviction

b. The vendor shall pay the vendee the price paid less value of the thing at the time of eviction

c. The vendor shall pay the price and the expenses of the contract.

d. The vendor is freed from liability.

e. A, B and C

10. In case of partial eviction, which of the following is/are the remedy/ies of the vendee?

a. Enforcement of the warranty against eviction

b. Rescission of the contract of sale

c. Accion Quanti Minoris

d. All of the above

e. A and B only

11. Statement 1: Earnest money is given prior to the perfection of a contract of sale; Statement 2: Option money given will be part of the purchase price.

a. Both statements are true

b. Both statements are false

c.Only statement 1 is true

d. Only statement 2 is true

12. Who among the following cannot enter into a contract of sale by reason of relative incapacity?

a. A 20-year old insane female who sells her land to her friend

b. A 17-year old student who likes to buy the laptop of her cousin

c. An agent who likes to buy the property of his principal, with the latter's consent

d. A lawyer who likes to buy the car of his client, which is subject of judicial foreclosure

e. All of the above

13. In which of the following circumstances is the seller an unpaid seller?

a. When the buyer pays the full price with a check and is encashed by the seller

b. When the buyer pays half of the purchase price in cash and half with a check but is dishonored

c. When the buyer tenders the full purchase price but the seller refuses to receive without valid reason

d. All of the above

e. None of the above

14. In which of the following circumstances are goods considered not in transit?*

a. If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them

b. From the time when the goods are delivered to a carrier for transmission to the buyer, until the buyer takes delivery of them

c. When the buyer becomes insolvent

d. If the carrier or other bailee wrongfully refuses to deliver the goods to the buyer

15. Which of the following statements is FALSE?

a. If the object of the sale deteriorates, before delivery, through the fault of the seller, the buyer can rescind the contract and ask for damages.

b. If the object of the sale is lost, before delivery, through the fault of the seller, the seller is obliged to pay damages.

c. If the object of the sale is improved, before delivery, at the expense of the seller, the seller can recover his expenses from the buyer.

d. If the object of the sale is lost, before delivery, without the fault of the seller, the obligation to deliver shall be extinguished.

e. None of the above

16. In which of the following circumstances does an unpaid seller lose his possessory lien?

a. When the buyer becomes insolvent

b. When the seller delivers the goods to a carrier for the purpose of transmission to the buyer while reserving the ownership in the goods

c. When the seller waives such right

d. All of the above

e. B and C only

17. Today, Mara sells to Clara the expected harvest of Mara's strawberry farm but the plants are still flowering. If the expected harvest is not realized, the sale

a. is voidable because of absence of subject matter

b. is rendered void because of lack of subject matter

c. becomes ineffective and Clara is not bound to pay the price

d. remains valid and Clara bears the risk of loss

18. Contract where the prospective seller explicitly reserves the transfer of title to the prospective buyer until the happening of an event like the payment of the purchase price:

a. Contract to Sell

b. Conditional Contract of Sale

c. Contract of sale or return

d. Contract of Barter

19. On 1 Dec, Sally orally sold to Bless a specific ring for P5,000. The parties agreed that Sally shall deliver the ring to Bless on 10 Dec and that Bless will pay the price on 15 Dec

a. The contract of sale is perfected on 1 Dec when the parties agreed on the sale of the ring and its price

b. The contract of sale is perfected on 10 Dec when the object of the sale was delivered

c. The contract of sale is perfected on 15 Dec when the price has been paid since the parties would then have performed their obligations

d. There is no perfected sale because the sale was made orally

20. Kind of delivery where corporeal property is placed in the control & possession of the vendee:

a. Traditio symbolica

b. Traditio Brevi Manu

c. Real Delivery

d. Quasi-delivery

21. Refers to the contract where the approval of the buyer is a condition precedent for the purchase of the goods:

a. Contract of sale on trial

b. Contract of sale by sample

c. Option contract

d. Contract of sale or return

e. Contract to sell

22. Statement 1: The delivery of the object in contracts of sale always transfers ownership over such object. Statement 2: The vendor shall not be bound to deliver the thing sold, if the vendee has not paid him the price.

a. Both statements are true

b. Both statements are false

c. Only statement 1 is true

d. Only statement 2 is true

23. Where the seller delivers to the buyer a quantity of goods less than he contracted to sell, what is/are the available remedy/ies of the buyer?

a. The buyer can rescind the contract

b. The buyer can reject the goods

c. The buyer can accept the goods so delivered & pay at the contract rate if he knew that the seller is not going to perform the contract in full

d. All of the above

e. B and C only

24. Statement 1: If there is no agreement between the parties or usage of trade, delivery can be made at the place of business of the seller. Statement 2: If there is an agreement between the parties, delivery shall be made at the residence of the seller.

a. Both statements are true

b. Both statements are false

c. Only statement 1 is true

d. Only statement 2 is true

25. Statement 1. Goods which are still to be manufactured at the time of the sale can be considered as objects of sale and the sale is perfected when there is a meeting of minds to that effect. Statement 2. Things subject to resolutory condition may be the object of the contract of sale.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

26. Statement 1. In a contract of sale if the thing or article is lost before delivery to the vendee, the vendor bears the loss. Statement 2. Sale is commutative which means that both parties give and receive equivalent values.

a. Only Statement 1 is true

b. Only Statement 2 is true

c. Both Statements are true

d. Both Statements are false

27. In case of breach of warranty against hidden defect, the seller is liable to pay, except?

a. The value of the thing sold at the time of the eviction

b. Expenses in the execution of the contract of sale

c. Cost of the suit

d. Damages and Interest

e. All of the above

28. Statement 1: If a contract of sale of real property by installments is cancelled due to failure to pay, the seller shall refund the cash surrender value of the payments equivalent to at least 50% of the total payments and after 5 years plus 5% every year but no case exceed 90% of the total payments made. Statement 2: In a contract of sale of real property by installments and 2 years of installment payments have been made, the buyer has one month grace period to pay, without additional interest, the unpaid installments due.

a. Both statements are true

b. Both statements are false

c. Only statement 1 is true

d. Only statement 2 is true

29. Ginny buys a 500 square meter parcel of land from Hermione at a price of P2,000 per square meter or a total of P1,000,000. Later it was discovered that the land being delivered by Hermione contains 550 square meters only. What is/are the available remedy/ies of Ginny?

a. Ginny can rescind the sale.

b. Ginny can accept the whole area and pay at the contract rate

c. Ginny can have the contract be declared void because the object is not determinate.

d. All of the above

e. A and B only

30. Ginny, a resident of Cebu, wrote and offered to sell her house and lot for P3,000,000 to her friend Harry, a resident of Baguio, who was interested in buying the same. In the letter, Ginny gave Harry one month within which to raise the amount & as soon as he is ready, they will sign the deed of sale. One week before the expiration of the one month period, Ginny went to Harry and told him that she is no longer willing to sell the property unless the price is increased to P5,000,000. What is/are the available remedy/ies of Harry?

a. Harry can demand and compel Ginny to sell the property for P3,000,000 in accordance with their agreement

b. Harry can opt for specific performance because there is already a perfected contract of sale.

c. Harry can sue Ginny for damages because of the breach of the obligation

d. All of the above

e. None because the unilateral promise of Ginny to sell, even if accepted by Harry, is not binding on Ginny because there is no consideration.

31. Ginny buys a parcel of land from Hermione at a full purchase price of P1,000,000. The contract states the boundaries of the land and the area, 500 square meters. Later it was discovered that the land within the boundaries contains only 450 square meters. Which of the following statements is legally correct?

a. The contract of sale is void because the object is not determinate.

b. There should be a proportionate reduction in the price because the area is lesser.

c. Ginny has no remedy because of the nature of their contract

d. A and B

32. Sam sold his dog to Jeremy for P5,000. No stipulation was made as to the date of delivery. If the dog gives birth to puppies before the delivery and payment of the price, which is correct?

a. Sam is entitled to the puppies because they were born before the obligation to deliver arose

b. Sam is entitled to the puppies because the price for the dog has not yet been paid

c. Jeremy is entitled to the puppies because they were born after the perfection of the contract

d. Jeremy should pay an additional amount for the puppies to be entitled to get them

33. Judicial process whereby the vendee is deprived of the whole or part of the thing purchased by virtue of a final judgment based on a right prior to the sale or an act imputable to the vendor

a. Accion Redhibitoria

b. Legal Redemption

c. Pre-emption

d. Eviction

34. Defect in animals which is not known/could not have been known even if professional inspection has been made & expert knowledge is not sufficient to discover it

a. Redhibitory defect

b. Eviction

c. Hidden defect

d. Caveat venditor

35. Contract by which a person transfers to another his rights and actions against a third person in consideration of a price certain in money or its equivalent:

a. Contract of Sale

b. Contract of Agency to Sell

c. Assignment of Credit

d. Contract to Sell

36. Which of the following is not a mode of extinguishment of a contract of sale?

a.Legal Redemption

b. Merger

c. Novation

d. B and C

e. None of the above

37. Mode of extinguishment of sale that takes place when the vendor reserves and exercises the right to repurchase the thing sold

a. Pre-emption

b. Conventional Redemption

c. Renunciation

d. Payment

38. In assignment of rights, the right is transmitted upon:

a. payment of the price

b. perfection of the contract

c. execution of a public instrument

d. registration of the public instrument

39. Ella sold a retro to Mon a parcel of land. It was agreed upon by the parties that Ella cannot redeem within three (3) years from the date of the sale. The period of redemption is:

a. Four (4) years counted from the end of the first 3 years

b. Ten (10) years counted from the end of the first 3 years

c. Anytime after 3 years because no period was agreed upon

d. The seller cannot redeem because no period was agreed upon

40. What is the legal remedy of the buyer if the seller fails to redeem the property within the period agreed upon in a pacto de retro sale?

a. Specific performance to compel the seller to redeem

b. Foreclosure proceedings

c. Request the Registry of Deeds to cancel the vendor's title and issue a new title in the name of the buyer

d. File a petition for consolidation of ownership with the court

41. No. 1 - A contract of sale is a mode of acquiring ownership. No. 2 - Every delivery transfers ownership.

a. Both are false.

b. Both are true.

c. No. 1 is true; No. 2 is false.

d. No. 1 is false; No. 2 is true.

42. Statement 1: If the thing should have been sold to different buyers, the ownership should be transferred to the person who may have been in possession thereof in good faith, if it should be movable property. Statement 2: The seller is responsible to the buyer for any hidden defects or fault in the thing sold only if he was aware thereof.

a. Both statements are false

b. 1st statement true, 2nd statement false

c. Both statements are true

d. 1st statement false, 2nd statement true

43. Which of the following is not a requisite of a seller's right of stoppage in transit?

a. The goods are sold without any stipulation as to credit, or the term of credit has expired, or buyer becomes insolvent

b. The seller is unpaid

c. The buyer is insolvent

d. The goods are still in the possession of the seller

44. One of the following is not a remedy granted to an unpaid seller:

a. Right to demand a security for the payment of the price

b. Right of lien over the goods

c. Right of resale

d. Right of stoppage of goods in transit

45. In three of the following there is no warranty against hidden defects of animals. Which is the exception?

a. Animals sold at public auction

b. Livestock sold as condemned, declared known to the buyer

c. Animals sold at fairs

d. Animals sold with illness which illness is unknown to the buyer

46. A, B, and C are co-owners of a parcel of land pro - indiviso. A sold his share to B in an absolute deed of sale. Which is correct?

a. The deed of sale between A and B is void since it was made not in favor of a third person

b. C may exercise his right of redemption on the interest of A sold to B.

c. C cannot exercise the right of redemption since the sale was made to a co-owner.

d. C may redeem only of the share sold by A to B.

47. I - If the same movable thing was sold to different buyers, the ownership shall pertain to the one who has taken possession thereof in good faith. II - The seller is liable to the buyer for any hidden defect of the thing sold only if the seller was aware thereof.

a. Both are false

b. First Statement is true, second is false

c. Both are true

d. First statement is false, second is true

48. A and B entered into contract of lease with option to buy the car of the former for a term of two years. For three months B failed to pay the rentals and by reason thereof, A repossessed the car. Hence

a. A can collect the unpaid rentals for 3 months

b. A can collect the unpaid rentals for the duration of the term of the lease of 2 years

c. When A deprived B the possession of the leased car, he has no further action against the latter for any unpaid rentals

d. A shall return the rentals without deductions to B by virtue of the rescission of the contract of lease with option to buy

49. A offered in writing to sell his house and lot for P1M to B on January 20, 2011. B requested A to give him 1 month to raise the amount. On January 25, 2011, A informed B that he has raised the price to P1.5M. Can B compel A to accept the payment to P1M for the sale of the house and lot?

a. Yes, because A is already stopped by his written offer of P1M

b. Yes, because the 1 month option period has not yet expired

c. No, because there is as yet no perfected sale

d. No, because the seller has the sole discretion in fixing the price with or without the concurrence of the buyer

50. I - in case of double sale of real property, the possessor in good faith shall be preferred to the registrant but in bad faith. II - In all cases of double sale, priority is given to the buyer in good faith, that is, whether registrant, possessor or with the oldest title

a. Both are true

b. First is true, second is false

c. Both are false

d. First statement is false, second is true

51. I- the seller of a thing must have the right to transfer the ownership thereof at the time of the meeting of the minds of the parties. II - The sale of a mere hope or expectancy is deemed subject to the condition that the thing will come into existence. It is a sale however of a present thing, that is, the hope itself already existing.

a. First statement is false, second is true

b. First is true, second is false

c. Both are false

d. Both are true

52. A sold to B a particular pencil for P250. The sale is oral. It was agreed that the payment and delivery are to be made after 2 years from the sale. At the stipulated period, A refused to deliver alleging he has no obligation to do so. Is A correct?

a. Yes, because the sale is voidable and cannot be enforced.

b. Yes, because the contract is unenforceable it being an oral contract.

c. No, because the contract is enforceable since the price is less than P500.00.

d. No, the contract is valid, binding and therefore must be given effect.

53. I - Even in the absence of doubt, a sale with right of repurchase is presumed to be an equitable mortgage. II - In conventional redemption, it is not necessary that the parties agree upon the period within which redemption may be exercised.

a. First is false, second is true

b. Both statements are correct

c. Both are false

d. First is true, second is false

54. I - Warranty against eviction as well as against hidden defect may be waived by the vendee provided the vendor is in good faith. II - Waiver intencionada on the part of the vendee will absolutely exempt the vendor from liability.

a. Both statements are correct

b. First is false, second is true

c. Both are false

d. First is true, second is false

55. I - In waiver consiente there is no warranty against eviction but the seller is still liable to pay the value of the thing at the time of eviction if eviction takes place. II - In case of total eviction, the vendee cannot rescind the sale with damages.

a. Both statements are correct

b. First is false, second is true

c. Both are false

d. First is true, second is false