26. What if in the preceding number, Bea gave Jake P2,000 to give her one week to decide and Jake sold the car to Barbie before Bea's acceptance within the option period. Will Jake be liable for damages? *

A. Yes because the sale between Jake and Bea was already perfected.

B. Yes because Bea became the owner of the car upon her acceptance of Jake's offer.

C. Yes because Jake is bound by his promise, the same being supported by a consideration distinct from the price

D. No because Jake is not bound by his promise, the same being unsupported by a consideration distinct from the price.

E. No because there is policitation.

27. Seledona orally sold a parcel of land to Belissimo. They agreed that payment and delivery will be made 2 months thereafter. Belissimo failed to pay on the stipulated date. Seledona filed a case against Belissimo to require him to pay for the land. Will the case filed by Seledona prosper? *

A. No, because the sale is unenforceable under the Statute of frauds.

B. No because there is no perfection of the contract.

C. Yes because there is already partial performance.

D. Yes because the contract has already been perfected

28. Selina orally sold a townhouse to Bellini. They agreed that Bellini will be allowed to transfer to the townhouse upon payment of 30% of the price today and the balance will be paid 5 months thereafter. On the stipulated date of payment of the balance, Selina refused to accept the payment of Bellini, alleging that their contract is unenforceable under the Statute of frauds. Is Selina correct? *

A. No because the Statute of Frauds is not applicable to partially executed contracts.

B. No because the Statute of Frauds is applicable to contracts which are partially performed.

C. Yes because sale of immovable regardless of the price, must be in writing to be enforceable.

D. Yes because the value of the immovable is above P500 and so it must be in writing to be enforceable.

29. Bilmoko bought a particular car on the installment plan. A chattel mortgage was also constituted on the car. B defaulted in the payment of one of the installments. What is/are the remedy/remedies of the seller under the Recto law? *

A. Exact fulfillment of the obligation

B. Cancel the sale

C. Foreclose the chattel mortgage

D. All of the above

30. Bilmoko bought a particular car from Toyota. It was agreed that Bilmoko will give a down payment of 50% and the remaining balance will be paid 3 months thereafter. A chattel mortgage was also constituted on the car. Bilmoko failed to pay the balance on the due date so Toyota foreclosed the chattel mortgage. Despite the foreclosure sale, the proceeds are not enough to cover the deficiency. Can Toyota still collect the deficiency? *

A. No because under the Recto law, if the seller chooses to foreclose the mortgage, he can no longer recover any unpaid balance of the price.

B. No because the remedy of foreclosure is not available to Toyota there being only one unpaid installment.

C. Yes because the car was not bought on installment and the Recto law is not applicable to a straight sale.

D. None of the above.

31. The seller sold certain goods to the buyer on sale or return. Can the buyer return the goods to the seller even if he finds nothing wrong with the quality of the goods? *

A. No because the buyer becomes the owner upon delivery.

B. No because there is no basis for returning the goods as there is nothing wrong with the quality of the same.

C. Yes because in sale or return, the buyer has the option to return the goods instead of paying the price regardless of the quality of the goods.

D. Yes because a sale or return is a sale on trial.

32. The following are the rules regarding the place of delivery of goods sold except: *

A. The place agreed upon by the parties

B. Where there is no agreement, place is determined by usage of trade.

C. Where there is no agreement or usage of trade, place of delivery is the seller's place of business

D. Where there is no agreement or usage of trade, deliver to the buyer's residence.

E. In any other case, place of delivery is the seller's residence

33. Becky is a manufacturer and seller of shoes. Sarah placed an order for size 15, colored violet with glitters, which is something not ordinarily made by Becky. What is the contract between Sarah and Becky? *

A. Sale

B. Agency

C. Barter

D. Piece of work

E. None of the above

34. Suppose in the preceding number, Sarah did not get the shoes on the date that she was supposed to. Becky displayed the same on her store. Miss Minchin liked and paid for it. What contract was created between Becky and Miss Minchin? *

A. Sale

B. Agency

C. Barter

D. Piece of work

E. None of the above

35. Selia sold to Bella 5000 cans of tomato sauce at P40 per can to be delivered at the place of business of Bella. Selia delivered 5,500 cans. What can the buyer do if the seller delivers more than she contracted? *

A. Reject the whole of the goods

B. Accept the quantity contracted and reject the rest

C. Accept the whole quantity upon payment of the contract price.

D. B and C only

E. A and C only

36. Stella in Manila agrees to ship goods to Bruce at Vigan, "F.O.B Vigan". Before the goods reach Vigan, they are destroyed by a fortuitous event. Who bears the loss? *

A. Stella bears the loss because ownership does not pass till the goods reach the destination.

B. Bruce bears the loss because delivery to the carrier is delivery to the buyer

C. Bruce bears the loss because the buyer bears the loss if the goods are lost due to a fortuitous event after the perfection of the contract but before delivery.

D. The carrier bears the loss by reason of the nature of its business.

E. None of the above

37. The unpaid seller can exercise his right of possessory lien in the following cases except: *

A. Where the goods have been sold without any stipulation as to credit

B. Where the goods have been sold on credit but the term of credit has expired.

C. Where the buyer becomes insolvent

D. None of the above

38. The following are the requisites for the exercise of the right of the unpaid seller to stop the goods in transit except *

A. The seller must be unpaid

B. The carrier must have acknowledged that he holds the goods on behalf of the buyer

C. The buyer must be insolvent

D. The goods must be in transit

39. Becky acquired a booklet of 100 sweepstakes from the PCSO. She paid P2000 for the booklet less 20% discount. As per agreement with PCSO, she will also be entitled to an agent's prize should one of the tickets purchased from her wins a principal prize. PCSO refused to accept unsold tickets from Becky saying that the same are non-returnable and non-refundable. What is the contract between Becky and PCSO? *

A. Sale

B. Agency

C. Barter

D. Piece of work

40. Jobert grants Francis the right to sell the former's appliances. If Francis is able to sell the appliances, he will be given a 10% commission, which he can deduct from the total proceeds of the sale immediately before he remits the same to Jobert. If Francis is not able to sell the appliances, he has to return the same to Jobert. What contract is created? *

A. Sale

B. Agency

C. Barter

D. Piece of work

41. Mimi went to the bank to change her Philippine pesos for American dollars at the rate of exchange. What contract was created between Mimi and the bank? *

A. Sale

B. Agency

C. Barter

D. Piece of work

E. None of the above

42. Maria Mercedes went to a shoe store to buy a pair of shoes of a particular size but the last pair in that size was already sold earlier so she placed an order for one. What contract was created? *

A. Sale

B. Agency

C. Barter

D. Piece of work

E. None of the above

43. Yvonne and Albert entered into an agreement whereby Yvonne was to deliver her two cars worth P300,000 each to Albert who was to deliver his van worth P650,000. On the date of delivery, Yvonne only brought one car and P300,000 which was nevertheless accepted by Albert. What is the contract between Yvonne and Albert? *

A. Sale

B. Agency

C. Barter

D. Piece of work

E. None of the above

44. Sonia sold to Bella 10 baskets of fruits worth P10,000 payable after one week. Bella failed to accept the goods and pay the price so S was forced to sell it to Tess for P6,000. Can Sonia recover her loss of P4,000 from Bella? *

A. No because Sonia should have notified Bella first of her intention to resell the goods.

B. Yes because the loss was a result of the breach of the contract of sale on the part of Bella.

C. No because inasmuch as the seller is no longer liable for profits made by such resale, the seller cannot also recover the loss incurred in the same.

D. Yes provided that Sonia notified Bella of her intention to resell.

45. Sarah sold a land with an area of 500 square meters to Becky for a lump sum of P300,000. A year after their execution of a public instrument transferring the land to Becky, it was ascertained that the area included within the boundaries is really 600 square meters. Becky asked Sarah to transfer the deficiency of 100 square meters but Sarah refused. Who will win the case? *

A. Sarah, because in a sale for a lump sum, the buyer must pay the contract price regardless of the difference in the actual and stated area.

B. Becky, because in a sale for a lump sum where the boundaries and area are stated, the seller must deliver all that is included in the boundaries.

C. Sarah, because the right of Becky to file an action has already prescribed, having been filed a year after delivery..

D. Becky, because if the seller fails to deliver all that is included, the buyer can either rescind the contract or ask for a reduction in the price.

46. Shane is the owner of a parcel of land which she sold to Bryan who did not take possession nor registered the sale. By forging the signature of Shane, Edren sold the land to Lyka who, in good faith, registered the sale. Who is the rightful owner of the land? *

A. Bryan, because his title is older than Lyka's.

B. Bryan, because he acquired his title from the owner Shane

C. Lyka, because she is the first registrant in good faith

D. Lyka, because Bryan did not take possession nor registered the sale of the land.

47. Sean sold a parcel of land to Bea and then again to Cris. Both are in good faith. After knowing the sale to Cris, Bea registered the sale. Who is the preferred buyer? *

A. Cris, because Bea is in bad faith for registering the sale only after having knowledge of the sale to Cris.

B. Bea, because she is the first registrant in good faith

48. Stacy sold his land to Bert in a notarized deed of absolute sale. Thereafter, the same land was sold to Bernard who took actual possession. Who is the preferred owner? *

A. Bert, the first possessor in good faith

B. Bernard, the first possessor in good faith

49. There is no implied warranty on the part of the following except *

A. Sheriff

B. Auctioneer

C. Judgment debtor

D. State

50. The following are the essential elements to hold the seller liable for breach of warranty against eviction except: *

A. The vendee is deprived in whole or in part of the thing purchased

B. The vendee is deprived by final judgment

C. The vendee must have appealed the case.

D. The judgment is based on a right prior to the sale or an act imputable to the vendor.

E. There is no waiver on the part of the vendee.

51. The seller sold a parcel of land to the buyer. Subsequently, another person files an action for the recovery of possession claiming that he is the owner of the land. At the instance of the buyer, the seller was summoned to defend his title. The court rendered judgment in favor of the third person and against the buyer. After the judgment's finality the buyer filed a case of breach of warranty against the seller. *

A. The seller is liable for breach of warranty against eviction.

B. The seller is not liable for breach of warranty against eviction

52. The seller sold to the buyer a parcel of land. Three days thereafter, several informal settlers built their shanties on the land. The buyer sued the seller for breach of warranty *

A. The seller is liable for breach of warranty against eviction.

B. The seller is not liable for breach of warranty against eviction

53. The seller has a parcel of land, the taxes on which he has not paid. He sold it to a buyer who was unaware of the unpaid taxes. Later the court ordered that the land be sold at public auction for the non-payment of taxes and the buyer was evicted. After finality of judgment, the buyer sued the seller for breach of warranty *

A. The seller is liable for breach of warranty against eviction.

B. The seller is not liable for breach of warranty against eviction

54. Sergio delivered certain goods to Brenan but the latter refused to accept them because they are not of the kind and quality agreed upon. The following are the duties of the buyer except:

A. Brenan must notify Sergio that he refuses to accept the goods

B. Brenan must return the goods to Sergio

C. Brenan must take reasonable care of the goods.

D. All of the above

55. The following are the obligations of the vendee except: *

A. Accept delivery

B. Pay the price of the thing sold

C. Bear the expenses of execution of contract if agreed upon

D. Inspect the thing sold

E. None of the above

56. The buyer after receiving the goods, sold them to another persons is a form of: *

A. acceptance. .

B. Express acceptance

C. Implied acceptance

D. Double Sale

E. Right of resale.

57. The buyer upon receipt of the goods which he rejected have the following obligations except: *

A. Actually return the goods.

B. Notify the seller of the rejection.

C. Take good care of the goods.

D. All of the above.

58. The following statements are true in a pacto de retro sale except: *

A. The vendee a retro becomes the owner of the property subject of the sale.

B. The vendee a retro can sell or mortgage the property to a third person.

C. The vendee a retro can only sell or mortgage the property only after the expiration of the period of redemption.

D. The vendee a retro is subrogated to the vendor's rights and actions

59. The following are requisites of partnership, except: *

a. There must be a valid contract.

b. There must be a contribution of money, property, and industry to a common fund.

c. The partnership must be organized for gain or profit.

d. The partnership should have a lawful object or purpose, and must be established for the common benefit or interest of the partners.

60. There are two tests to determine the existence of a partnership:I. First test: Determine whether or not there is an agreement to contribute money, property or industry to a common fund.II. Second test: Determine whether or not there is an intent of the contracting parties to divide the profits among themselves. *

a. Only I is true.

b. Only II is true.

c. Both are true.

d. Both are false