14. Which of the following is a remedy available to the Seller under the Recto Law, in case the vendee's failure to pay cover 2 or more installments

I. Exact fulfillment

II. Cancel the sale

III. Foreclose the chattel mortgage

A. I, II and III C. I or II only

B. I or II or III D. II or III only

15. A bought a truck from B payable in installment secured by a chattel mortgage on the truck. As additional security, A's brother, C, executed a real estate mortgage over his own land in favor of B. A defaulted in two installments. Which of the following is incorrect?

A. In case B opted to collect the balance, he can no longer foreclose the real estate mortgage.

B. In case B opted to foreclose the chattel mortgage, he can no longer collect the balance from A.

C. In case B opted to rescind the contract of sale, he can no longer foreclose the chattel mortgage.

D. In case B opted to foreclose the real estate mortgage and the proceeds are not sufficient to cover the balance, B can still collect the balance from A.

16. A forfeiture clause is prohibited under:

A. The Recto Law

B. The Maceda Law

C. Both A and B

D. Neither A nor B

17. A buyer of a residential realty in installments are entitled to rights under the Maceda Law. If the buyer already paid 4 years worth of installment, he is entitled to:

A. 60% cash surrender value

B. 120 days grace period

C. Both A and B

D. Neither A nor B

18. Before migrating to Canada in 2012, the spouses Teodoro and Anita entrusted all their legal papers and documents to their nephew, Atty. Tan. Taking advantage of the situation, Atty. Tan forged a deed of sale, making it appear that he had bought the couple's property in Quezon City. In 2015, he succeeded in obtaining a TCT over the property in his name. Subsequently, Atty. Tan sold the same property to Luis, who built an auto repair shop on the property. In 2016, Luis registered the deed of conveyance, and title over the property was transferred in his name.

In 2020, the spouses Teodoro and Anita came to the Philippines for a visit and discovered what had happened to their property. Which of the following is correct?

A. Teodoro and Anita can institute a declaration of nullity of the contract of sale between Atty. Tan and Luis if the latter is considered a buyer not in good faith.

B. Atty. Tan had a valid title over the property since certificates of title are considered indefeasible.

C. Luis acquires good title to the property regardless of good faith since the title was already in the name of Atty. Tan.

D. Luis cannot acquire good title to the property regardless of good faith since he derives his title from Atty. Tan, who is a forger, and as such never acquires good title to pass.

19. Sun Brothers Inc., engaged in the sale of refrigerators, sold a unit to Lopez under a conditional sale. The unit was delivered but the transfer of ownership is withheld until full payment of the price. Lopez, prior to paying the full price, sold the same unit to Lim, who in turn, sold the same to JV Trading, Inc., who in turn sold the same to Mr. Co.

Lopez never paid the full amount of the refrigerator. Now Sun Brothers seeks to recover the unit from Mr. Co. Which of the following is correct?

A. Sun Brothers Inc. can recover the refrigerator since ownership never passed to Lopez, who in turn had no ownership to pass to the subsequent buyers.

B. Sun Brothers Inc. can recover possession of the unit but it has to reimburse Mr. Co of the price paid by the latter.

C. Mr. Co acquired good title to the refrigerator unit since JV Trading, Inc. can be said to have apparent ownership

D. Mr. Co acquired good title to the refrigerator unit since he acquired the same from a merchant store.

20. S sold to B a specific car for P200,000, the price of which is to be paid 6 months after deliver. S retained ownership over the car despite delivery in order to secure the full payment of the price. Prior to the expiration of the 6-month period, the car was destroyed by fortuitous event. In this case who bears the risk of loss?

A. S

B. B

C. Both of them equally

D. Both of them in accordance with stipulation

21. The following are the available modes of delivery for sale of rights, except:

A. Execution of a public instrument

B. When the title of the ownership is placed in the possession of the buyer

C. By the use of the vendee of the rights with the vendor's consent

D. Constitutum Possessorium

22. In this type of sale, ownership already passes to the buyer upon delivery of the thing subject of the sale:

I. Sale or Return

II. Sale on Approval

III. Sale on Trial

A. I, II and III C. II and III only

B. I only D. I and III only

23. When the seller delivers to the buyer a quantity of goods less than that agreed upon, the buyer has the following options, except:

A. Reject the whole.

B. Accept the whole and pay the contract rate if he has no knowledge that the seller is not going to perform the contract in full.

C. Accept the whole and pay the contract price if he has knowledge that the seller is not going to perform the contract in full.

D. Reject the whole if the contract is indivisible.

24. S sold to B his corner lot located along a provincial highway for P100,000. The deed of sale indicates that the area of the lot is 100sqm more or less Which of the following is incorrect?

A. If it turns out that the land only had an area of 90sqm, B can ask for the proportionate reduction in the price and pay only P90,000 corresponding to the area delivered.

B. B can ask for rescission by proving that he would not have entered into the contract of sale if he knew the area would be less than 100sqm.

C. B will still be bound to pay P100,000 even if the actual area of the land turns out to be only 89sqm.

D. If it turns out that the land had an area of 110sqm, S is still required to deliver the whole and accept the price of P100,000 agreed upon.